. /.   WORLD TRADE  
ORGANIZATION  G/SG/N/6/HRV/1 
23 september 2009 
 (09-4467) 
Committee on Safeguards Original:   English 
  
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION 
PROCEDURE AND THE REASONS FOR IT 
 
CROATIA 
 
(Semi hard cheese and cheese substitutes
) 
   The following communication, dated 16 September 2009, is being circulated at the request of the Delegation of Croatia. 
_______________ 
 
  Pursuant to Article 12.1(a) of the Agreement on Safeguards and to the format of notifications 
under the Agreement as adopted by the Committee on Safeguards (G/SG/N/6), Croatia hereby notifies 
that its competent authorities have initiated a safeguard investigation, as follows:   
 
1. Date investigation was initiated  
 
 On 28 August 2009, the Ministry of the Ec onomy, Labour and Entrepreneurship initiated an 
investigation relating to serious injury or threat of  serious injury to the domestic producers of products 
like or directly competing with certain impor ted semi hard cheese and cheese substitutes.   
 
2. Product subject to the investigation  
 
 Cheese gouda classified under 04069078, cheese edam under 04069023, cheese substitutes 
under 2106909250 and 2106909850 CN codes of the Croatia's Customs Tariff Regulation for 2009.   
 3. Reasons for the initiation of investigation  
(i) Was the investigation initiated pursuant to a petition from the domestic industry?   
 
 The investigation was initiated by the Ministry of the Economy, Labour and Entrepreneurship 
after the Proposal for initiating an investigati on for introducing a safeguard measure on importing 
semi-hard cheeses and cheese substitut es into the customs territory of the Republic of Croatia has 
been received by the Economic Interest A ssociation of Croatian producers of cheese.   
 
(ii) Evidence on the basis of which the investigation was initiated. 
  Recently and especially in 2009 there has b een a significant increase in imports of the 
products concerned both in absolute terms, and re lative to consumption of the Croatian market and 
production as compared to previous years.    
 Preliminary analysis of the increase of import has been made for the period 2006- 2008, as  
well as for the period from January to June 2009.   G/SG/N/6/HRV/1 
Page 2  
 
    In tons  
Description  2006  2007  2008  I-VI  
2008  I–VI  
2009  Index 
5/4 
 1 2 3 4 5 6 
Gouda 4,441 3,793 3,007 997 2,255 226 
Edam 617 861 1,041 192 385 201 
Cheese substitutes 1,650 2,12 3 4,345 1,983 1,886 94 
TOTAL IMPORT  6,708  6,777  8,393  3,172  4,526  143 
Total production of semi hard 
chesses 12,402 13,150 13,859 6,970 7,043 101 
Import share 1-4 54.1 51.5 60.6 45.5 64.3   
 
The data presented indicate a continuous growth of the import of semi-hard cheeses and 
cheese substitutes as compared to the domestic production.   
 
The average imported quantity in the period 2006-2008 amounted to 7,293 tons, accounting 
for 56 per cent of domestic production of semi-hard cheeses.     A significant growth of import was registered in the first six months of 2009, when the share 
of import increased to 64.3 per cent of domestic pr oduction.  Consequently, cheese stocks increased, 
thus causing financial losses in the domestic diary industry.    
In the first six months of 2009, the average import price of semi-hard cheeses and cheese 
substitutes for which investigation is being initiated was reduced by almost 30 per cent as compared 
to the same period 2008.   
  The quantities of milk produced, i.e. purch ased from milk producers in the Republic of 
Croatia cannot be redirected to production of other diary products groups.  The current milk stock 
exceeds threefold the optimum stock and the stock of semi-hard cheese exceeds twofold the optimum stock (3,000 tons).   
 
If the import of semi-hard cheeses and cheese subs titutes is not decreased the existence of 
milk producers will be threatened due to the resulti ng decrease of buy-out from over 6,000 producers.   
 (iii)  Evidence, if any, on critical circumstan ces where delay would cause damage which it would 
be difficult to repair.  
  The reason for the initiation of an investigati on for the introduction of a safeguard measure on 
importing of semi hard cheese and cheese substitutes is  considerable increase of import of semi-hard 
cheese and cheese supplements at the prices consider ably lower from the manufacturers’ prices in 
Croatia, what has adverse impact on the domestic dairy industry and milk producers.   
 
 The Croatian authority has assessed that the cu rrent status and delay in taking a safeguard 
measure threatens to cause irreparable injury to dairy industry.   
 
4.  Sources of information 
  The public notice on the initiation of investiga tion was published in the Official Gazette 
(Narodne novine  103/09 ) on 28 August 2009. 
__________